Better.com vs. Rocket Mortgage: Choosing the Right Online Lender

Buying a new home or refinancing the home you already own could be a smart financial decision when interest rates are low. However, you might be hesitant because the mortgage process can be time-consuming (just thinking of the paperwork and signatures and cost make me cringe a little).

Mortgage companies such as Better.com and Rocket Mortgage use technology to make the process simpler and less cumbersome. When deciding between Better.com vs. Rocket Mortgage, be aware of a few small differences, but both can serve your mortgage needs well.

Better.com vs. Rocket Mortgage

Let’s take a quick look at how these online mortgage lenders stack up.

	Better.com	Rocket Mortgage
Types of loans offered	Conventional Jumbo FHA	Conventional Jumbo FHA VA
Minimum credit score	580 FHA loans 620 conventional loans 700 jumbo loans	580 for FHA loans 620 conventional loans
States available	All 50 states and Washington, D.C.	All 50 states and Washington, D.C.

What both lenders excel at

For customers who want to buy a home or refinance their mortgage, both options offer a primarily online loan process. Here are more details on the features that both companies offer homebuyers and homeowners.

Online application process

Both companies offer an online dashboard that personalizes the mortgage experience based on your mortgage needs. I like an online experience for most purchases nowadays, and if you’re comfortable not having a local human to deal with, you’ll likely be happy with either Better.com or Rocket Mortgage.

Once you've entered your personal information and the details of your proposed mortgage, you can shop rates, terms, and different fee structures until you find one that works for you. You can typically track your loan through the underwriting process so you can stay on top of any needed steps to complete the approval process.

Variety of mortgage products

Both Better.com and Rocket Mortgage offer a range of mortgage products: conforming conventional mortgages, jumbo loans, and certain government-backed loans.

If you want an FHA loan, either lender will work, but Rocket Mortgage also offers VA loans. Neither lender offers USDA loans.

You can also choose from a variety of loan terms with either lender, with both fixed-rate and adjustable-rate options.

Neither company offers home equity loans or lines of credit (HELOCs).

Customer service and support options

When comparing Better.com to Rocket Mortgage, customer service availability is pretty similar as well. Neither one has 24/7 customer service (though Better.com used to) but there are a lot of options for assistance at nearly any time.

• Better.com: email or phone Monday-Friday 8 a.m. to 9 p.m. ET, Saturday-Sunday 9 a.m. to 9 p.m. ET
• Rocket Mortgage: email or phone for new loan support Monday-Friday 9 a.m. to 7 p.m. ET, Saturday 9 a.m. to 6 p.m. ET
• Rocket Mortgage: self-service automated phone or Rocket Assist chat available 24/7

Availability nationwide

Both Rocket Mortgage and Better.com currently serve all 50 states and the District of Columbia.

3 important differences to be aware of

There are a few differences that may make your choice of mortgage lender simpler.

Commissions

Often, home loan officers are paid a commission of about 1%-2% of the loan amount. You can imagine how that might be a negative for you as a homebuyer, since it seems to incentivize the loan officer nudging you toward a higher-priced property.

Unlike Rocket Mortgage, Better.com makes it known that they do not charge commissions for their loans. With Rocket Mortgage, that should be something to look for, and could help you to negotiate your mortgage rate. You might also be on the lookout in case Better.com ends up charging you higher interest rates or other fees.

Origination fees

Origination fees are expenses that mortgage lenders add on to the cost of a mortgage to cover their expenses and increase profits. Better.com does not charge origination fees for its mortgages, while Rocket Mortgage does. Since these fees typically range from 0.5% to 1.0%, you can and should negotiate them before committing to the lender.

Customer satisfaction

While both Rocket Mortgage and Better.com have overall very high customer ratings, Rocket Mortgage stands out among competitors. J.D. Power has rated Rocket Mortgage number one in client satisfaction 22 times.

Rocket Mortgage has received accolades for customer service and satisfaction from Yahoo! Finance, NerdWallet, USA Today, Kiplinger, and more.

Plus, if you glance at customer ratings on Trustpilot, both companies have high marks, but Rocket Mortgage simply has a lot more reviews.

• Rocket Mortgage: 4.7 stars out of 5 (34,000+ reviews)
• Better.com: 4.4 stars out of 5 (1,700+ reviews)

Overall, I’d say either company has a solid track record, but if you need a factor to sway you, Rocket Mortgage has a bit of an edge with its impressive awards history and larger customer review base.

Which lender should you choose?

Choosing a mortgage lender comes down to the numbers but also your preferences. While some companies may have lower mortgage rates or fees, you may not feel comfortable dealing with them. For example, if I were a first-time homebuyer, I’d probably prefer working with an in-person loan officer who could walk me through the mortgage process.

You should also consider the type of mortgage you need. If you know you want to use a VA loan for your home purchase, for example, you’ll want to avoid Better.com as it doesn’t offer that type of loan.

Better.com may be best if you want to avoid extra fees. They do not charge commissions or origination fees, which may lower your overall out-of-pocket costs. However, the company is relatively young, and the CEO’s firing of 900 workers over Zoom in 2021 might not sit well with you.

Rocket Mortgage may be your choice if you want a company with a really strong track record of serving customers well. It’s an older company and has more satisfied customers overall.

FAQs

Bottom line

While the traditional mortgage process is overwhelming and time-consuming, working with Better.com or Rocket Mortgage may simplify things for you. Both companies come highly recommended, although Rocket Mortgage (formerly Quicken Loans) has been around longer.

Of course, there are other lenders besides these two. It’s best to consider multiple lenders so you can compare potential monthly payments, interest rates, loan programs, and other loan details. To learn about other lenders that might be a good fit, you might consider others of the best mortgage lenders.